Core business

Core business
The core business of a company is the business that it is primarily in.

Core business - The sector(s) of business activity that is the reason or purpose for being, e.g. providing meals within a restaurant would be considered core, while sales of art works on the wall may be non core.

Cyclical companies core businesses can be expected to fluctuate in line with the overall economy. In a booming economy such companies will look excellent; in a recession, their growth stalls, and they might even lose money.
Speculative Growth ...

earned surplus Earnings not paid out as dividends but instead reinvested in the core business... earnest money A deposit paid by a hopeful buyer to bind a purchase. In the event that the... earning asset An asset which provides income.

WARREN BUFFETT's CRITERIA: Buffett indicates that all investments must pass four key tests: the business is simple to understand (marginal pass, core business model simple to understand but has complex technology multiple business segments), ...

Futures are widely used to hedge core business risks, an example is a foreign exchange contracts where the buyer, a European exporter, can hedge the euro-dollar exchange rate by buying futures on the euro-dollar exchange rate.

Investment companies are entities whose core business consists of one or more activities relating to investment services, i.e., own-account or third-party trading, third-party asset management, and intermediation on primary markets.

You figure that your core business pays for the company's basic operations. If you can just cover your direct product costs, any price above that will drop right down to the bottom line--after all, this contract represents incremental business.

However, their core business relates to the products and services provided to their customers, using the Franchising strategy to deliver those products and services in a consistent manner.

Investors do expect firms to take risks, especially with regard to their core business competencies. It may be that investors expect the firm to take interest rate risk.

Business reference modelling is the development of reference models concentrating on the functional and organizational aspects of the core business of an enterprise, service organization or government agency.

In some cases, a company may want to refocus its core businesses, shedding those that it sees as unrelated. Or it may want to set up an Internet company to capitalize on investor interest.

This usually involves cost control programs, improving efficiency, bringing more focus to the core businesses, achieving more management effectiveness, outsourcing production and back office operations to low-cast locations etc.

The profit earned from a firm's normal core business operations. This value does not include any profit earned from the firm's investments (such as earnings from firms in which the company has partial interest) and the effects of interest and taxes.

Breaking total return into current yield and expected dividend growth, we should also sort the growth potential into two buckets--growth in the company's core business (assuming it's profitable growth, that is, or all bets are off) and the growth ...

Unbundling - The process of taking over a large company with several different lines of business, and then, while retaining the core business, selling off the subsidiaries to help fund the takeover.

There's an exception to this rule if generating that income is your core business; for instance, if you are a real estate developer in the business of renting or selling property, you operate a bank, or you are in the rent-to-own business.

that a corporation's security prices are determined by its future earnings and dividend abilities. Besides studying a corporation's financial data, they will also examine its industry and how the economy will affect the company's core business.

Thus before-tax income can often give a better sense than net income of the company's core business strength. Before-tax income is often expressed as a percentage of revenue, also known as the pretax margin.

In the 1980s and 1990s, many conglomerates sold off divisions and concentrated on a few core businesses. Analysts generally consider stocks of conglomerates difficult to evaluate because they are involved in so many unrelated businesses.

The new company might be listed on a stock exchange. Shareholders in the original company usually receive the same percentage holding in the new company. Demergers are normally performed so each company can focus on its core business.

Economic studies of diversifying corporate MERGERS have found that these often hurt the shareholders of the acquiring firm; by contrast, diversified FIRMS that have sold off non-core businesses have typically made their shareholders much better off.

FuelTech has recently acquired a pair of small-cap companies that help regulate waste emissions. These strategic acquisitions will help FuelTech to diversify and expand its core business.

Relocation services: Relocating people or business to a different country
Corporate Real Estate: Managing the real estate held by a corporation to support its core business-unlike managing the real estate held by an investor to generate income ...

See also: Banks, Expense, Saving, Acquisitions, Values